Recent media reports have revealed that News Corp Australia is close to the final steps of launching a sports betting brand. This could signal big news for the Australian gambling sector, amidst a bidding war that is arising over ownership of Tabcorp’s flagging wagering division.
News Corp Australia
News Corp Australia is one of the country’s biggest media conglomerates with a staff complement of around 8000 individuals. Their interests include newspapers and film distribution.
The company was first opened in 1923 by James Edward Davidson. A minority interest in the company was later purchased by Sir Keith Murdoch in 1949, leading to his eventual control over the company. When Sir Keith passed away in 1952, his son, Rupert transformed the business into a media conglomerate with News Corp as the foundation.
News Corp Australia currently owns 142 newspapers and 30 magazines. The firm holds a majority share of Foxtel and owns the Australian News Channel along with its investment in the Brisbane Broncos. Recently the company has accelerated its website creation and acquisition and now counts KidSpot, Business Spectator, The Punch, and the online version of The Australian as some of its properties.
FOX Bet in focus
At the moment, News Corp is negotiating with American-based Fox Corp for its FOX Bet brand, an online sports betting platform that can operate legally in the U.S. states of Michigan, New Jersey, Pennsylvania, and Colorado.
As both companies are controlled by the Murdoch family, there should be no obstacles to a fruitful resolution and once the deal is finalised, News Corp would gain the licensing rights to the FOX Bet name. The deal is likely to be a non-cash one, with ad credits from The Daily Telegraph, The Herald Sun, The Australian, and Foxtel serving as legal tender.
In the absence of any official confirmation of the deal’s finalisation, some insider sources have said negotiations are at an “advanced stage.”
The maverick
Matthew Tripp, the former head of Sportsbet and the founder of BetEasy invested $25 million in sports betting technology company BetMakers in February, simultaneously signing on as an advisor. He has stated that he intends to ease both of their expansions into the U.S. and Australian markets.
BetMakers recently offered a bid of AU$4 billion to acquire the assets of Aussie bookmaker Tabcorp and Tripp is a member of a consortium currently in negotiations with News Corp.
If things go according to his plan, Tripp could find himself running both Tabcorp and FOX Bet in tandem. BetMakers would then be perfectly situated to supply the back-end systems needed by News Corp.
What’s on the horizon?
Tabcorp’s dismal fate offered News Corp an opportunity to grow its empire and this latest development is sure to send ripples across the Australian sports betting sphere.
Tripp’s extensive experience virtually assures that FOX Bet would grow significantly with him at the helm, and with the News Corp media empire, he will have all the advertising resources he needs at his fingertips.
News Corp can boast a so far illustrious history in the Australian betting market. The company operates the Racenet and Punters websites, as well as Foxtel that streams live sports odds. All of this demonstrates what a dominant force News Corp has risen to become in the Aussie market, presenting a significant mountain to climb for any competitors who seek to dethrone them.
